What Are the Different Classes of Assets?

When it comes to investing their money, many people are content to take a random approach. They may have received a hot tip for a particular investment and decided to plow a large amount of money into it with no regard to the overall balance of their portfolios. However, research has shown that it is through the careful selection of the various asset classes, rather than the individual investments themselves, that people prosper financially. Therefore, the careful selection and distribution of your investments among the various asset classes is likely to prove crucial to the future success of your investment portfolio.

There are five broad asset classes that you should take into consideration when constructing your investment portfolio.

Cash refers to the most liquid holdings in your portfolio. This asset class includes the balance in your checking account, money market account, and certificates of deposit. Conventional wisdom holds that you should keep three to six months’ salary in cash to cover yourself in the event of an emergency.

Fixed-principal investments are those that do not put your principal at risk due to market forces. Fixed annuities and trust deeds fall into this category.

Debt makes up the third asset class. It includes municipal, corporate, government, and government agency bonds. It also covers other debt-secured investments such as collateralized mortgage obligations.

Equity represents an ownership interest in a business entity; this class covers any investment you might make in stocks. It also covers any interest you may have in a closely held corporation or partnership.

How you choose to distribute your investments among the various asset classes depends on your goals, your risk tolerance, and your expected rate of return. Keep in mind that asset allocation does not guarantee a profit or protect against loss; it is a method used to help manage investment risk. All investments are subject to market fluctuation, risk, and loss of principal. When sold, investments may be worth more or less than their original cost.

Information provided has been prepared from Broadridge Advisor Solutions sources and data we believe to be accurate, but we make no representation as to
its accuracy or completeness. Data and information is provided for informational purposes only, and is not intended for solicitation or trading
purposes. Broadridge Advisor Solutions is not an affiliate of AXA Advisors, LLC. Please consult your tax and legal advisors regarding your individual
situation. Neither AXA Advisors nor any of the data provided by AXA Advisors or its content providers, such as Broadridge Advisor Solutions, shall be
liable for any errors or delays in the content, or for the actions taken in reliance therein. By accessing the AXA Advisors website, a user agrees
to abide by the terms and conditions of the site including not redistributing the information found therein.

Securities offered through AXA Advisors, LLC (212-314-4600), member
FINRA/SIPC.
Annuity and insurance products offered through AXA Network, LLC and its insurance agency subsidiaries. AXA Network, LLC does business in California
as AXA Network Insurance Agency of California, LLC and, in Utah, AXA Network Insurance Agency of Utah, LLC. AXA Advisors and its affiliates do not
provide tax or legal advice. Individuals may transact business and/or respond to inquiries only in state(s) in which they are properly registered
and/or licensed. The information in this web site is not investment or securities advice and does not constitute an offer.

Har-El Financial Group Inc is not owned or operated by AXA Advisors or AXA Network.

AXA Equitable Holdings, Inc. is a publicly traded corporation, and it and its subsidiaries are currently using trademarks including the "AXA" name, AXA logo and associated trademarks of AXA SA under license.